Beef Producer Relocates To Save On Taxes
BRAZIL - The worlds largest beef producer, JBS, is relocating its meat packing operations to reap tax savings.
31 August 2011
1 minute read
The restructuring should enable JBS to raise output from its domestic operations by five per cent through efficiency gains and enable the company to save around 200 million Real a year ($125 million) by reducing its tax bill and overheads.
The company said it would suspend operations at the Presidente Epitacio unit in Sao Paulo state due to tax inefficiencies there and shift that plant's output northwest to a unit in neighbouring Mato Grosso do Sul state.
Slaughtering and de-boning at some units in Parana, Minas Gerais, Mato Grosso and Roraima states would be moved to other locations, in many cases to units in the same states. The proximity of some existing units was also behind the reconfiguration.
JBS said it did not expect to resume operations at units where it was halting work, in particular as long as the current tax regime that applied to them remained in place.
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